Bank.Green's New Report Highlights Widespread Climate Failures Across US Banking Sector

London, UK – 1 November, 2024 – Following its in-depth analysis of the UK banking sector earlier this year, climate advocacy nonprofit Bank.Green has now turned its attention to the United States, delivering a sobering assessment of how US banks are responding to the climate crisis. With over 4,500 federally insured banks in the country, Bank.Green's latest report examines 90 of the largest US-headquartered institutions, providing a representative snapshot of the sector’s climate policies and accountability.

Staggering Results Show Industry-Wide Inaction

The findings are stark. 95% of US banks fall into the "Worst," "Bad," or "Okay" rating categories based on their climate policies, transparency, and investment activities. Only one bank earned a "Great" rating, while 84% of banks either directly contribute to fossil fuel financing or fail to disclose their role in supporting the fossil fuel industry. This widespread lack of transparency makes it nearly impossible for consumers to understand whether their bank is actively contributing to climate change.

Key Findings:

• Transparency Crisis: 62% of the banks studied failed to disclose any data on their investments in fossil fuels. Without this transparency, stakeholders are left in the dark about how a bank’s investments align—or conflict—with climate goals.
• Fossil Fuel Financing: 22% of banks allocate at least twice as much energy financing to fossil fuels than renewable energy; a critical measure in determining their commitment to decarbonization. Many of the rest continue to significantly fund fossil fuel projects, undermining global climate efforts.
• Exclusion Policies: Only 12% of banks have adopted policies to exclude financing of high-risk fossil fuel projects. Even more concerning, most of these policies are weak or symbolic, lacking the rigor needed to drive meaningful change.

Climate Governance and Greenwashing

Bank.Green’s report sheds light on how some banks use tokenistic governance committees and green products to project an environmentally friendly image, while continuing to invest heavily in fossil fuel projects behind the scenes.

"Despite the climate rhetoric from many US banks,” said Zak Gottlieb, Executive Director and Cofounder of Bank.Green, “the lack of transparency around their practices raises concerns about potential greenwashing. Without clear disclosures, it remains extremely difficult to verify the extent of their commitments to real climate action.”

Despite growing demand for sustainable financial products, only 18% of top US banks offer green financial products such as loans for renewable energy projects. Even among banks offering these products, many still fall short on broader climate responsibility, raising concerns about greenwashing.

Path Forward: A Call for Transparency and Action

While the overall picture is bleak, the report highlights a few stand-out institutions that are leading the way. Institutions like Huntington, Fifth Third Bank and Comerica Bank are paving the path toward a greener future, showing that it’s possible to prioritize climate-safe lending while maintaining profitability.

Bank.Green’s Message to Consumers: The power to drive change lies in your hands. By choosing banks that prioritize climate responsibility, customers can push the banking sector toward a more sustainable future.

Read the Full Report: The full analysis and bank ratings will be released on October 22nd at 

1. https://bank.green/blog/us-banks-fossil-fuels  
2. https://bank.green/blog/us-banks-league-table

About Bank.Green:
Bank.Green is a nonprofit organization dedicated to empowering individuals and businesses to make informed decisions about where they bank. By rating banks based on their climate policies and practices, Bank.Green aims to drive a shift towards a greener, climate-conscious banking system.

For media inquiries, please contact:
Zak Gottlieb, Executive Director

zak@bank.green

+52 (564) 157-1453
https://bank.green